Question And Answer
Subject: Sec.154. Rectification of mistake apparent from record
Querist: A C Jain.
Answered by:
Date: April 25, 2023
Query asked by A C Jain.

Can a application for rectification be filed where the assessing officer makes an addition under 69A when the section is not applicable

In the present case the addition has been made on account of a “transaction” recorded in the books of account. In the present case the assessee a stock broker on clients orders  executed orders of   purchase and sale of shares through the national stock exchanges. on behalf of an alledged paper company  duely registered with the ROC all transaction being carried out through banks and dmat accounts.

The total amount RECEIVED on account of such transactions was around 5 cr. and the total amount PAID  out was 27cr. The A.O made an addtion of Rs. 5 cr. ( ignoring the amount paid amounting to Rs.27 cr.)  to the returned income on account of this “transaction” under sec 69A ignoring the amount paid,  whreas addition under this section can be on account of “valuable article is not recorded in the books of account, if any, maintained by him for any source of income, and the assesse offers no explanation about the nature and source of……”

Where the assessing officer himself states that the addtion is made on account of this “transaction” which is recorded in the books can an addtion be made u/s,69A .

Is this not an error apparent on record ?

Should this not be rectified on an application made under  U/s.154.?

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Answer given by

Yes it is a mistake apparent on record , however the AO may take the view that it is debatable , hence it is advisable to file an appeal .

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